Cover
Cover - shares | 6 Months Ended | |
Mar. 31, 2023 | May 05, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-13992 | |
Entity Registrant Name | RCI HOSPITALITY HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 76-0458229 | |
Entity Address, Address Line One | 10737 Cutten Road | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77066 | |
City Area Code | (281) | |
Local Phone Number | 397-6730 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | RICK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,430,225 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --09-30 | |
Entity Central Index Key | 0000935419 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Current assets | ||
Cash and cash equivalents | $ 22,784 | $ 35,980 |
Accounts receivable, net | 6,755 | 8,510 |
Current portion of notes receivable | 239 | 230 |
Inventories | 4,571 | 3,893 |
Prepaid expenses and other current assets | 6,870 | 1,499 |
Assets held for sale | 0 | 1,049 |
Total current assets | 41,219 | 51,161 |
Property and equipment, net | 295,861 | 224,615 |
Operating lease right-of-use assets, net | 37,244 | 37,048 |
Notes receivable, net of current portion | 4,569 | 4,691 |
Goodwill | 84,051 | 67,767 |
Intangibles, net | 156,331 | 144,049 |
Other assets | 1,856 | 1,407 |
Total assets | 621,131 | 530,738 |
Current liabilities | ||
Accounts payable | 7,743 | 5,482 |
Accrued liabilities | 20,958 | 11,328 |
Current portion of debt obligations, net | 21,016 | 11,896 |
Current portion of operating lease liabilities | 2,951 | 2,795 |
Total current liabilities | 52,668 | 31,501 |
Deferred tax liability, net | 30,936 | 30,562 |
Debt, net of current portion and debt discount and issuance costs | 224,751 | 190,567 |
Operating lease liabilities, net of current portion | 36,429 | 36,001 |
Other long-term liabilities | 383 | 349 |
Total liabilities | 345,167 | 288,980 |
Commitments and contingencies (Note 10) | ||
Equity | ||
Preferred stock, $0.10 par value per share; 1,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value per share; 20,000,000 shares authorized; 9,430,225 and 9,231,725 shares issued and outstanding as of March 31, 2023 and September 30, 2022, respectively | 94 | 92 |
Additional paid-in capital | 85,082 | 67,227 |
Retained earnings | 190,905 | 173,950 |
Total RCIHH stockholders’ equity | 276,081 | 241,269 |
Noncontrolling interests | (117) | 489 |
Total equity | 275,964 | 241,758 |
Total liabilities and equity | $ 621,131 | $ 530,738 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares, issued (in shares) | 9,430,225 | 9,231,725 |
Common stock, shares outstanding (in shares) | 9,430,225 | 9,231,725 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | ||||
Total revenues | $ 71,517 | $ 63,692 | $ 141,485 | $ 125,528 |
Cost of goods sold | ||||
Total cost of goods sold (exclusive of items shown separately below) | 9,118 | 8,760 | 18,127 | 17,651 |
Salaries and wages | 19,428 | 16,530 | 38,104 | 33,035 |
Selling, general and administrative | 22,026 | 18,437 | 44,758 | 36,923 |
Depreciation and amortization | 3,760 | 2,877 | 7,067 | 5,071 |
Other charges (gains), net | 3,758 | 7 | 3,104 | (144) |
Total operating expenses | 58,090 | 46,611 | 111,160 | 92,536 |
Income from operations | 13,427 | 17,081 | 30,325 | 32,992 |
Other income (expenses) | ||||
Interest expense | (3,677) | (2,864) | (7,364) | (5,468) |
Interest income | 90 | 112 | 181 | 218 |
Non-operating gains, net | 0 | 0 | 0 | 84 |
Income before income taxes | 9,840 | 14,329 | 23,142 | 27,826 |
Income tax expense | 2,147 | 3,356 | 5,178 | 6,289 |
Net income | 7,693 | 10,973 | 17,964 | 21,537 |
Net loss (income) attributable to noncontrolling interests | 39 | (21) | 6 | (10) |
Net income attributable to RCIHH common shareholders | $ 7,732 | $ 10,952 | $ 17,970 | $ 21,527 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.83 | $ 1.15 | $ 1.94 | $ 2.28 |
Diluted (in dollars per share) | $ 0.83 | $ 1.15 | $ 1.94 | $ 2.28 |
Weighted average shares used in computing earnings per share | ||||
Basic (in shares) | 9,265,781 | 9,489,085 | 9,247,824 | 9,447,854 |
Diluted (in shares) | 9,265,781 | 9,489,085 | 9,247,824 | 9,447,854 |
Dividends per share (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.11 | $ 0.09 |
Sales of alcoholic beverages | ||||
Revenues | ||||
Total revenues | $ 30,136 | $ 27,335 | $ 59,786 | $ 53,766 |
Cost of goods sold | ||||
Total cost of goods sold (exclusive of items shown separately below) | 5,365 | 4,896 | 10,739 | 9,730 |
Sales of food and merchandise | ||||
Revenues | ||||
Total revenues | 11,005 | 11,160 | 21,352 | 22,054 |
Cost of goods sold | ||||
Total cost of goods sold (exclusive of items shown separately below) | 3,737 | 3,840 | 7,323 | 7,797 |
Service revenues | ||||
Revenues | ||||
Total revenues | 25,690 | 21,501 | 51,253 | 42,377 |
Other | ||||
Revenues | ||||
Total revenues | 4,686 | 3,696 | 9,094 | 7,331 |
Service and other | ||||
Cost of goods sold | ||||
Total cost of goods sold (exclusive of items shown separately below) | $ 16 | $ 24 | $ 65 | $ 124 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Noncontrolling Interests |
Common Stock, Beginning balance (in shares) at Sep. 30, 2021 | 8,999,910 | |||||
Beginning balance at Sep. 30, 2021 | $ 179,223 | $ 90 | $ 50,040 | $ 129,693 | $ 0 | $ (600) |
Treasury Stock, Beginning balance (in shares) at Sep. 30, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common shares for business combination (in shares) | 500,000 | |||||
Issuance of common shares for business combination | 30,362 | $ 5 | 30,357 | |||
Payment of dividends | (380) | (380) | ||||
Net income (loss) | 10,564 | 10,575 | (11) | |||
Common Stock, Ending balance (in shares) at Dec. 31, 2021 | 9,499,910 | |||||
Ending balance at Dec. 31, 2021 | 219,769 | $ 95 | 80,397 | 139,888 | $ 0 | (611) |
Treasury Stock, Ending balance (in shares) at Dec. 31, 2021 | 0 | |||||
Common Stock, Beginning balance (in shares) at Sep. 30, 2021 | 8,999,910 | |||||
Beginning balance at Sep. 30, 2021 | 179,223 | $ 90 | 50,040 | 129,693 | $ 0 | (600) |
Treasury Stock, Beginning balance (in shares) at Sep. 30, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 21,537 | |||||
Common Stock, Ending balance (in shares) at Mar. 31, 2022 | 9,454,267 | |||||
Ending balance at Mar. 31, 2022 | 227,423 | $ 94 | 77,553 | 150,366 | $ 0 | (590) |
Treasury Stock, Ending balance (in shares) at Mar. 31, 2022 | 0 | |||||
Common Stock, Beginning balance (in shares) at Dec. 31, 2021 | 9,499,910 | |||||
Beginning balance at Dec. 31, 2021 | 219,769 | $ 95 | 80,397 | 139,888 | $ 0 | (611) |
Treasury Stock, Beginning balance (in shares) at Dec. 31, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of treasury shares (in shares) | (45,643) | |||||
Purchase of treasury shares | (2,845) | $ (2,845) | ||||
Canceled treasury shares (in shares) | (45,643) | (45,643) | ||||
Canceled treasury shares | 0 | $ (1) | (2,844) | $ 2,845 | ||
Payment of dividends | (474) | (474) | ||||
Net income (loss) | 10,973 | 10,952 | 21 | |||
Common Stock, Ending balance (in shares) at Mar. 31, 2022 | 9,454,267 | |||||
Ending balance at Mar. 31, 2022 | $ 227,423 | $ 94 | 77,553 | 150,366 | $ 0 | (590) |
Treasury Stock, Ending balance (in shares) at Mar. 31, 2022 | 0 | |||||
Common Stock, Beginning balance (in shares) at Sep. 30, 2022 | 9,231,725 | 9,231,725 | ||||
Beginning balance at Sep. 30, 2022 | $ 241,758 | $ 92 | 67,227 | 173,950 | $ 0 | 489 |
Treasury Stock, Beginning balance (in shares) at Sep. 30, 2022 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of treasury shares (in shares) | (1,500) | |||||
Purchase of treasury shares | (98) | $ (98) | ||||
Canceled treasury shares (in shares) | (1,500) | (1,500) | ||||
Canceled treasury shares | 0 | (98) | $ 98 | |||
Payment of dividends | (462) | (462) | ||||
Stock-based compensation | 941 | 941 | ||||
Share in return of investment by noncontrolling partner | (600) | (600) | ||||
Net income (loss) | 10,271 | 10,238 | 33 | |||
Common Stock, Ending balance (in shares) at Dec. 31, 2022 | 9,230,225 | |||||
Ending balance at Dec. 31, 2022 | $ 251,810 | $ 92 | 68,070 | 183,726 | $ 0 | (78) |
Treasury Stock, Ending balance (in shares) at Dec. 31, 2022 | 0 | |||||
Common Stock, Beginning balance (in shares) at Sep. 30, 2022 | 9,231,725 | 9,231,725 | ||||
Beginning balance at Sep. 30, 2022 | $ 241,758 | $ 92 | 67,227 | 173,950 | $ 0 | 489 |
Treasury Stock, Beginning balance (in shares) at Sep. 30, 2022 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 17,964 | |||||
Common Stock, Ending balance (in shares) at Mar. 31, 2023 | 9,430,225 | 9,430,225 | ||||
Ending balance at Mar. 31, 2023 | $ 275,964 | $ 94 | 85,082 | 190,905 | $ 0 | (117) |
Treasury Stock, Ending balance (in shares) at Mar. 31, 2023 | 0 | |||||
Common Stock, Beginning balance (in shares) at Dec. 31, 2022 | 9,230,225 | |||||
Beginning balance at Dec. 31, 2022 | 251,810 | $ 92 | 68,070 | 183,726 | $ 0 | (78) |
Treasury Stock, Beginning balance (in shares) at Dec. 31, 2022 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common shares for business combination (in shares) | 200,000 | |||||
Issuance of common shares for business combination | 16,308 | $ 2 | 16,306 | |||
Payment of dividends | (553) | (553) | ||||
Stock-based compensation | 706 | 706 | ||||
Net income (loss) | $ 7,693 | 7,732 | (39) | |||
Common Stock, Ending balance (in shares) at Mar. 31, 2023 | 9,430,225 | 9,430,225 | ||||
Ending balance at Mar. 31, 2023 | $ 275,964 | $ 94 | $ 85,082 | $ 190,905 | $ 0 | $ (117) |
Treasury Stock, Ending balance (in shares) at Mar. 31, 2023 | 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 17,964 | $ 21,537 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,067 | 5,071 |
Impairment of assets | 662 | 0 |
Stock-based compensation | 1,647 | 0 |
Gain on sale of businesses and assets | (689) | (708) |
Unrealized loss on equity securities | 0 | 1 |
Amortization of debt discount and issuance costs | 291 | 136 |
Gain on debt extinguishment | 0 | (83) |
Noncash lease expense | 1,463 | 1,238 |
Gain on insurance | (91) | (321) |
Doubtful accounts expense on notes receivable | 0 | 53 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 708 | 1,065 |
Inventories | 79 | (276) |
Prepaid expenses, other current and other assets | (5,705) | (5,360) |
Accounts payable, accrued and other liabilities | 8,288 | 5,508 |
Net cash provided by operating activities | 31,684 | 27,861 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of businesses and assets | 2,810 | 2,910 |
Proceeds from insurance | 91 | 485 |
Proceeds from notes receivable | 113 | 82 |
Payments for property and equipment and intangible assets | (20,890) | (13,990) |
Acquisition of businesses, net of cash acquired | (30,200) | (39,302) |
Net cash used in investing activities | (48,076) | (49,815) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from debt obligations, including related party proceeds of $0 and $650, respectively | 11,595 | 35,742 |
Payments on debt obligations | (6,481) | (7,290) |
Purchase of treasury stock | (98) | (2,845) |
Payment of dividends | (1,015) | (854) |
Payment of loan origination costs | (205) | (418) |
Share in return of investment by noncontrolling partner | (600) | 0 |
Net cash provided by financing activities | 3,196 | 24,335 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (13,196) | 2,381 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 35,980 | 35,686 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 22,784 | 38,067 |
CASH PAID DURING PERIOD FOR: | ||
Interest | 6,874 | 5,064 |
Income taxes | 5,605 | 4,008 |
Noncash investing and financing transactions: | ||
Debt incurred in connection with acquisition of businesses | 32,405 | 22,200 |
Debt incurred in connection with purchase of property and equipment | 5,584 | 2,625 |
Note receivable from sale of property | 0 | 2,700 |
Issuance of shares of common stock for acquisition of businesses: | ||
Number of shares | 200 | 500 |
Fair value | 16,308 | 30,362 |
Adjustment to operating lease right-of-use assets related to new and renewed leases | 1,659 | 19,187 |
Adjustment to operating lease liabilities related to new and renewed leases | 1,958 | 19,187 |
Unpaid liabilities on capital expenditures | $ 3,045 | $ 1,201 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Proceeds from related party debt | $ 0 | $ 650 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of RCI Hospitality Holdings, Inc. (the “Company,” “RCIHH,” “we,” or “us”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP” or “U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They do not include all information and footnotes required by GAAP for complete financial statements. The September 30, 2022 consolidated balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended September 30, 2022 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on December 14, 2022. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair statement of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023. We made certain reclassification adjustments to segment disclosures related to prepaid insurance and goodwill. These assets were acquired by the registrant and presented in Corporate segment but mostly benefit subsidiaries belonging to other reportable segments. Prior year disclosures were also made to conform to current year presentation. There is no impact in consolidated total assets, results of operations, and cash flows in all periods presented. See Note 11. |
Recent Accounting Standards and
Recent Accounting Standards and Pronouncements | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Standards and Pronouncements | Recent Accounting Standards and Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU amends ASC 805 to require acquiring entities to apply ASC 606 to recognize and measure contract assets and contract liabilities in business combinations. The ASU is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are still evaluating the impact of this ASU but we do not expect it to have a material impact on our consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The amendments of this ASU clarify that an entity should measure the fair value of an equity security subject to contractual sale restriction the same way it measures an identical equity security that is not subject to such a restriction. The FASB said the contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not affect its fair value. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. We are still evaluating the impact of this ASU on our consolidated financial statements. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements, which amends certain provisions of ASC 842 that apply to arrangements between related parties under common control. The ASU requires all companies to amortize leasehold improvements associated with common control leases over the asset's useful life to the common control group regardless of the lease term. It also allows private and certain not-for-profit entities to use the written terms and conditions of an agreement to account for common control leases without further assessing the legal enforceability of those terms. The guidance is effective for all entities in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. We are still evaluating the impact of this ASU on our consolidated financial statements. |
Current Operating Environment
Current Operating Environment | 6 Months Ended |
Mar. 31, 2023 | |
Current Operating Environment [Abstract] | |
Current Operating Environment | Current Operating Environment Our fiscal 2020 was the period hardest hit by the COVID-19 pandemic caused by significant reduction in customer traffic in our clubs and restaurants due to changes in consumer behavior as social distancing practices, dining room closures and other restrictions were mandated or encouraged by federal, state and local governments. In fiscal 2021, our businesses started to recover from the initial effects of the pandemic when government restrictions eased. Stimulus money also flowed to the economy at that time which prompted increased discretionary spending. In fiscal 2022, several coronavirus variants threatened to bring back tight restrictions. Along with the pandemic, geopolitical and macroeconomic events started to affect the U.S. economy in general, with global inflation and supply chain disruption impacting our businesses the most. Toward the end of fiscal 2022 and continuing to the current fiscal year, geopolitical and macroeconomic events have impacted our operating results and cash flows by causing inflation on wages and other operating expenses. In the event global inflation leads to a major economic downturn, our business operations and cash flow could be significantly affected. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Lubbock Property On October 10, 2022, the Company purchased real estate in Lubbock, Texas amounting to $3.4 million for a future Bombshells location. The Company paid $1.1 million in cash at closing and obtained bank financing for the $2.3 million remainder (see Note 7). The site includes extra land that will be listed for sale once the Bombshells unit is completed. Non-Income-Producing Properties • On October 11, 2022, the Company purchased a hangar in Arcola, Texas amounting to $754,000 in cash. • On February 6, 2023, in view of the increasing business presence of the Company in the Denver, Colorado area, the Company acquired a non-income-producing corporate property for $458,000 in cash, to be used for office space and employee housing. Heartbreakers Gentlemen's Club On October 26, 2022, the Company completed the acquisition of a club in Dickinson, Texas for a total agreed acquisition price of $9.0 million (with a total consideration preliminary fair value of $8.9 million based on certain legal contingencies that existed pre-acquisition). The acquisition included (1) $2.5 million for the adult entertainment business covered in a stock purchase agreement paid fully in cash at closing and (2) $6.5 million for the real estate property covered in a real estate purchase agreement paid $1.5 million in cash at closing and $5.0 million under a 6% 15-year promissory note (see Note 7). In the stock purchase agreement, the Company acquired 100% of the capital stock of the company which owned the adult entertainment business. The acquisition gives the Company its first adult club in the Galveston, Texas area market. The following is our preliminary allocation of the fair value of the acquisition price (in thousands) as of October 26, 2022: Current assets $ 64 Property and equipment 4,884 Licenses 1,170 Tradename 340 Accrued liability (95) Deferred tax liability (374) Total net assets acquired 5,989 Goodwill 2,916 Acquisition price fair value $ 8,905 We believe that in this acquisition goodwill represents the existing customer base of the club in the area and the added synergy profitability expansion when we implement the Company's processes into the club. Goodwill, licenses, and tradename will not be amortized but will be tested at least annually for impairment. Approximately $1.5 million of the recognized goodwill will be deductible for tax purposes. In connection with this acquisition, we incurred approximately $0 and $23,000 in acquisition-related expenses during the three and six months ended March 31, 2023, respectively, which is included in selling, general and administrative expenses in our unaudited condensed consolidated statements of income. From the date of acquisition until March 31, 2023, the club contributed revenues of $554,000 and $901,000 and income from operations of $103,000 and $160,000 during the three and six months ended March 31, 2023, respectively, which are included in our unaudited condensed consolidated statements of income. The seller has not maintained historical U.S. GAAP financial data and it is impracticable to prepare them, therefore, we could not provide supplemental pro forma information of the combined entities. Aurora CO Property On November 8, 2022, the Company purchased real estate in Aurora, Colorado amounting to $850,000 in cash for a future Bombshells location. Central City CO Casino Property 1 On December 5, 2022, the Company purchased real estate in Central City, Colorado amounting to $2.4 million in cash for the development of a Rick's Cabaret Steakhouse and Casino business. Mark IV Property On December 16, 2022, the Company purchased real estate in Fort Worth, Texas amounting to $2.4 million in cash. The property has two buildings, one of which the Company is leasing out to an existing tenant and the other building the Company is remodeling for future adult club operations. Grange Food Hall On December 20, 2022, the Company purchased a food hall property in Greenwood Village, Colorado for $5.3 million, including direct transaction costs and net of certain accrued taxes amounting to $102,000. The purchase price was paid $1.9 million in cash at closing and $3.325 million under a 6.67% five-year promissory note (see Note 7). The Company allocated $2.1 million to land, $2.6 million to building improvements, $98,000 to furniture, fixtures and equipment, and $565,000 to in-place leases based on their relative fair values. Tomball Parkway Property Sale On December 28, 2022, the Company sold a property classified as held-for-sale with a carrying value of $1.0 million for $1.7 million in cash. The Company used $1.2 million of the proceeds to pay off a loan related to the property. Central City CO Casino Property 2 On February 6, 2023, the Company purchased real estate in Central City, Colorado amounting to $2.2 million in cash for the development of another casino business. Bombshells San Antonio On February 7, 2023, the Company completed the acquisition of a previously franchised Bombshells location in San Antonio, Texas for a total acquisition price of $3.2 million. The transaction was effected through a membership interest purchase agreement under which a subsidiary of the Company purchased 100% of the issued and outstanding membership interests of the target limited liability company that owns and operates the Bombshells location from the six previous owners of the entity (the "Sellers"). At acquisition date, the Sellers were paid $1.2 million in cash and were issued six seller-financed promissory notes totaling $2.0 million (see Note 7). The Company allocated the acquisition price $61,000 to inventory, $2.7 million to property and equipment, and $480,000 to favorable lease intangible and right-of-use assets, net of lease liability. Baby Dolls-Chicas Locas On March 16, 2023, the Company and certain of its subsidiaries completed the acquisition of five gentlemen's clubs, five related real estate properties, associated intellectual properties, and certain automated teller machines for a total purchase price of $66.5 million, payable with a total of $25.0 million in cash, a total of $25.5 million in 10-year 7% seller financing promissory notes, and 200,000 restricted shares of common stock based on an $80 per share price, subject to lock-up, leak out restrictions. The cash consideration at closing was partially funded by the $10.0 million line of credit secured by the Company on March 9, 2023 (see Note 7). The five clubs, which are all located in Texas, were purchased through four different asset purchase agreements and one stock purchase agreement, under each of which a newly formed wholly-owned subsidiary of the Company acquired from each club-owning entity all of the tangible and intangible assets and personal property used in the business of that club, except for certain excluded assets. As of the filing of this report, we have not completed our valuation analysis and related calculations in sufficient detail necessary to arrive at the fair values of the net assets acquired and the debt and stock consideration, but we have preliminarily allocated the acquisition price as follows based on negotiated purchase price: $632,000 to current assets, $41.6 million to property and equipment, $11.2 million to identifiable intangibles, $632,000 to accounts payable, and $14.0 million to goodwill. In connection with this acquisition, we incurred approximately $280,000 and $292,000 in acquisition-related expenses during the three and six months ended March 31, 2023, respectively, which is included in selling, general and administrative expenses in our unaudited condensed consolidated statements of income. From the date of acquisition until March 31, 2023, the clubs contributed revenues of $1.2 million and $1.2 million and loss from operations of $154,000 and $154,000 during the three and six months ended March 31, 2023, respectively, which are included in our unaudited condensed consolidated statements of income. The following table presents the unaudited pro forma combined results of operations of the Company and the five acquired clubs and related assets as though the acquisition occurred at the beginning of fiscal 2022 (in thousands, except per share amount and number of shares): For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 Pro forma revenues $ 77,292 $ 69,256 $ 154,424 $ 137,029 Pro forma net income attributable to RCIHH common stockholders $ 8,303 $ 12,444 $ 17,213 $ 24,849 Pro forma earnings per share - basic and diluted $ 0.88 $ 1.28 $ 1.83 $ 2.58 Pro forma weighted average shares used in computing earnings per share - basic and diluted 9,430,225 9,689,085 9,430,241 9,647,854 The above unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2022. The unaudited pro forma financial information reflects material, nonrecurring adjustments directly attributable to the acquisition including acquisition-related expenses, interest expense, and any related tax effects. Since we do not yet have a final valuation of the assets that we acquired and the liabilities that we assumed, the unaudited pro forma financial information does not include adjustments related to changes in recognized expenses caused by the fair value of assets acquired, such as depreciation and amortization and related tax effects. Pro forma net income and pro forma earnings per share include the impact of acquisition-related expenses and interest expense related to the $10.0 million line-of-credit facility (see Note 7) and the nine seller-financed notes in the acquisition as if they were incurred as of the first day of fiscal 2022. Pro forma weighted average number of common shares outstanding includes the impact of 200,000 shares of our common stock issued as partial consideration for the acquisition. |
Revenues
Revenues | 6 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 11), are shown below (in thousands): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 22,191 $ 7,945 $ — $ 30,136 $ 18,673 $ 8,662 $ — $ 27,335 Sales of food and merchandise 4,823 6,182 — 11,005 4,498 6,662 — 11,160 Service revenues 25,686 4 — 25,690 21,501 — — 21,501 Other revenues 4,331 184 171 4,686 3,502 9 185 3,696 $ 57,031 $ 14,315 $ 171 $ 71,517 $ 48,174 $ 15,333 $ 185 $ 63,692 Recognized at a point in time $ 56,577 $ 14,274 $ 127 $ 70,978 $ 47,722 $ 15,332 $ 185 $ 63,239 Recognized over time 454 * 41 44 539 452 * 1 — 453 $ 57,031 $ 14,315 $ 171 $ 71,517 $ 48,174 $ 15,333 $ 185 $ 63,692 Six Months Ended March 31, 2023 Six Months Ended March 31, 2022 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 44,289 $ 15,497 $ — $ 59,786 $ 36,840 $ 16,926 $ — $ 53,766 Sales of food and merchandise 9,417 11,935 — 21,352 9,087 12,967 — 22,054 Service revenues 51,219 34 — 51,253 42,185 192 — 42,377 Other revenues 8,431 280 383 9,094 6,843 19 469 7,331 $ 113,356 $ 27,746 $ 383 $ 141,485 $ 94,955 $ 30,104 $ 469 $ 125,528 Recognized at a point in time $ 112,495 $ 27,702 $ 338 $ 140,535 $ 94,066 $ 30,102 $ 468 $ 124,636 Recognized over time 861 * 44 45 950 889 * 2 1 892 $ 113,356 $ 27,746 $ 383 $ 141,485 $ 94,955 $ 30,104 $ 469 $ 125,528 * Lease revenue (included in Other Revenues) as covered by ASC 842. All other revenues are covered by ASC 606. The Company does not have contract assets with customers. The Company’s unconditional right to consideration for goods and services transferred to the customer is included in accounts receivable, net in our unaudited condensed consolidated balance sheet. A reconciliation of contract liabilities with customers is presented below (in thousands): Balance at September 30, 2022 Net Consideration Recognized in Balance at March 31, 2023 Ad revenue $ 82 $ 284 $ (239) $ 127 Expo revenue 8 405 — 413 Franchise fees and other 144 (12) (44) 88 $ 234 $ 677 $ (283) $ 628 |
Selected Account Information
Selected Account Information | 6 Months Ended |
Mar. 31, 2023 | |
Selected Account Information [Abstract] | |
Selected Account Information | Selected Account Information The components of accounts receivable, net are as follows (in thousands): March 31, 2023 September 30, 2022 Credit card receivables $ 2,768 $ 2,687 Income tax refundable 1,773 2,979 ATM in-transit 1,006 819 Other (net of allowance for doubtful accounts of $85 and $30, respectively) 1,208 2,025 Total accounts receivable, net $ 6,755 $ 8,510 Notes receivable consist primarily of secured promissory notes executed between the Company and various buyers of our businesses and assets with interest rates ranging from 6% to 9% per annum and having original terms ranging from 1 to 20 years. The components of prepaid expenses and other current assets are as follows (in thousands): March 31, 2023 September 30, 2022 Prepaid insurance $ 4,960 $ 191 Prepaid legal 32 61 Prepaid taxes and licenses 689 391 Prepaid rent 150 296 Other 1,039 560 Total prepaid expenses and other current assets $ 6,870 $ 1,499 A reconciliation of goodwill as of March 31, 2023 and September 30, 2022, which is substantially all in Nightclubs segment, is as follows (in thousands): Gross Accumulated Impairment Net Balance at September 30, 2022 $ 88,921 $ 21,154 $ 67,767 Acquisitions (see Note 4) 16,946 — 16,946 Impairment — 662 (662) Balance at March 31, 2023 $ 105,867 $ 21,816 $ 84,051 The components of intangible assets, net are as follows (in thousands): March 31, 2023 September 30, 2022 Indefinite-lived: Licenses $ 105,142 $ 103,972 Trademarks 24,659 13,119 Domain names 23 23 Definite-lived: Licenses 24,780 25,962 Leases acquired in-place 231 117 Noncompete agreements 25 55 Favorable leases 853 78 Software 618 723 Total intangible assets, net $ 156,331 $ 144,049 The components of accrued liabilities are as follows (in thousands): March 31, 2023 September 30, 2022 Insurance $ 4,694 $ 30 Sales and liquor taxes 2,400 2,227 Payroll and related costs 4,171 3,186 Property taxes 1,813 2,618 Interest 698 499 Patron tax 464 467 Unearned revenues 628 234 Lawsuit settlement 3,109 246 Other 2,981 1,821 Total accrued liabilities $ 20,958 $ 11,328 The components of selling, general and administrative expenses are as follows (in thousands): For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 Taxes and permits $ 2,739 $ 2,361 $ 5,423 $ 4,597 Advertising and marketing 2,731 2,248 5,401 4,631 Supplies and services 2,657 2,175 5,081 4,155 Insurance 2,238 2,481 4,820 4,876 Legal 1,296 898 2,281 1,958 Lease 1,765 1,572 3,527 3,212 Charge card fees 1,683 1,466 3,580 2,797 Utilities 1,353 1,108 2,624 2,043 Security 1,308 1,050 2,472 2,137 Stock-based compensation 706 — 1,647 — Accounting and professional fees 657 622 2,175 1,968 Repairs and maintenance 1,207 903 2,371 1,628 Other 1,686 1,553 3,356 2,921 Total selling, general and administrative expenses $ 22,026 $ 18,437 $ 44,758 $ 36,923 The components of other charges (gains), net are as follows (in thousands): For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 Impairment of assets $ 662 $ — $ 662 $ — Settlement of lawsuits 3,120 385 3,120 577 Loss (gain) on disposal of businesses and assets 3 (58) (587) (400) Gain on insurance (27) (320) (91) (321) Other charges (gains), net $ 3,758 $ 7 $ 3,104 $ (144) |
Debt
Debt | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt On October 10, 2022, in relation to a real estate purchase (see Note 4), the Company borrowed $2.3 million from a bank lender. The 18-month promissory note bears an initial interest rate of 6% per annum adjusted daily to a rate equal to the Wall Street Journal prime rate plus 0.5% with a floor of 6%. The promissory note is payable in 17 monthly interest-only installments with the full principal and accrued interest payable at maturity. The Company paid approximately $26,000 in debt issuance cost at closing. This promissory note is secured by the purchased real estate property. On October 26, 2022, in relation to a club acquisition (see Note 4), the Company executed a promissory note for $5.0 million with the seller. The 6% 15-year promissory note is payable in 180 equal monthly payments of $42,193 in principal and interest. This promissory note is secured by the purchased real estate property. On November 18, 2022, in relation to a real estate purchase on September 12, 2022, the Company borrowed $1.5 million from a bank lender. The 18-month promissory note bears an initial interest rate of 6% per annum to be adjusted daily to a rate equal to the Wall Street Journal prime rate plus 0.5% with a floor of 6%. The promissory note is payable in 17 monthly interest-only installments with the full principal and accrued interest payable at maturity. This promissory note is secured by the purchased real estate property. On December 20, 2022, the Company executed a promissory note for $3.325 million with a bank lender in relation to a purchase of a food hall property (see Note 4). The 6.67% five-year promissory note is payable in 59 equal monthly installments of $22,805 in principal and interest, with the balance of principal and accrued interest payable at maturity. There are certain financial covenants with which the Company is to be in compliance related to this loan. On February 7, 2023, in relation to the acquisition of a franchised Bombshells location in San Antonio, Texas (see Note 4), the Company entered into six separate seller-financing promissory notes totaling $2.0 million. Each of the promissory notes has an interest rate of 7% per annum, has a term of 24 months, and is payable in monthly installments totaling $39,602 of principal and interest for the first 23 months based on a 60-month amortization schedule with the remaining unpaid principal and interest paid at maturity. On March 9, 2023, the Company closed a $10.0 million line-of-credit facility with a lender bank evidenced by a revolving promissory note, with an initial draw of $10.0 million at closing. The facility has an initial term of 24 months with a variable interest rate equal to the Wall Street Journal prime rate plus 1%. On such date that the principal balance is repaid to an amount less than $5.0 million, the facility's revolver feature is activated where the Company may draw from the remaining availability up to a maximum of $5.0 million. The Company shall also pay a non-usage fee of 0.5% based on the amount by which the average outstanding balance for the prior twelve months was less than $3.0 million or the amount by which the total aggregate advances during the prior twelve months totaled less than $3.0 million. The Company paid $115,000 in debt issuance costs, which is recorded as deferred charges to be amortized on a straight-line basis over 24 months. There are certain financial covenants with which the Company is to be in compliance related to this loan, including a compensating balance requirement of $3.0 million and a minimum tangible net worth requirement of $20.0 million. On March 16, 2023, in relation to the acquisition of five clubs with associated real estate, automated teller machines, and intellectual property (see Note 4), the Company executed nine secured promissory notes with a total principal amount of $25.5 million. Each of the nine promissory notes have an interest rate of 7% per annum with a term of 10 years, payable in arrears in 120 equal monthly payments of principal and interest amounting to $296,077 per month in the aggregate. The holder of the $5.0 million promissory note related to the real estate properties may call due from the Company a principal payment of $1.0 million once in every calendar year. Future maturities of long-term debt as of March 31, 2023 are as follows: $21.6 million, $38.0 million, $16.8 million, $12.7 million, $19.6 million and $140.3 million for the twelve months ending March 31, 2023, 2024, 2025, 2026, 2027, and thereafter, respectively. Of the maturity schedule mentioned above, $3.8 million, $25.7 million, $4.8 million, $0, $6.1 million and $71.8 million, respectively, relate to scheduled balloon payments. Unamortized debt discount and issuance costs amounted to $3.2 million and $3.4 million as of March 31, 2023 and September 30, 2022, respectively. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation On February 7, 2022, our board of directors approved the 2022 Stock Option Plan (the “2022 Plan”). The board’s adoption of the 2022 Plan was approved by the shareholders during the annual stockholders' meeting on August 23, 2022. The 2022 Plan provides that the maximum aggregate number of shares of common stock underlying options that may be granted under the 2022 Plan is 300,000. The options granted under the 2022 Plan may be either incentive stock options or non-qualified options. The 2022 Plan is administered by the compensation committee of the board of directors. The compensation committee has the exclusive power to select individuals to receive grants, to establish the terms of the options granted to each participant, provided that all options granted shall be granted at an exercise price not less than the fair market value of the common stock covered by the option on the grant date, and to make all determinations necessary or advisable under the 2022 Plan. On February 9, 2022, the board of directors approved a grant of 50,000 stock options to each of six members of management subject to the approval of the 2022 Plan. Stock-based compensation for the three and six months ended March 31, 2023, which is included in corporate segment selling, general and administrative expenses, amounted to $706,000 and $1.6 million, respectively. No stock-based compensation expense was recognized during the three and six months ended March 31, 2022. As of March 31, 2023, we had unrecognized compensation cost amounting to $5.4 million related to stock-based compensation awards granted, which is expected to be recognized over a weighted average period of 2.9 years. The February 9, 2022 stock options vest over four years with the first 20% having vested on the approval of the 2022 Plan at the 2022 annual stockholders' meeting on August 23, 2022, and 20% vesting on February 9 of each year thereafter, provided however that the options will be subject to earlier vesting under certain events set forth in the Plan, including without limitation a change in control. All of the options will expire, if not exercised, at the end of five years. The weighted average grant-date fair value of the stock options was $31.37 per share. No stock options were exercised during the three and six months ended March 31, 2023. As of March 31, 2023, 120,000 stock options were vested and exercisable. For the three and six months ended March 31, 2023, we excluded 300,000 stock options from the calculation of diluted earnings per share because their effect was anti-dilutive. There were no stock options outstanding during the three and six months ended March 31, 2022. Aside from the outstanding stock options, there were no other potentially dilutive securities for inclusion in the calculation of diluted earnings per share. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $2.1 million and $5.2 million during the three and six months ended March 31, 2023, respectively, compared to $3.4 million and $6.3 million during the three and six months ended March 31, 2022, respectively. The effective income tax expense rate was 21.8% and 22.4% for the three and six months ended March 31, 2023, respectively, compared to 23.4% and 22.6% for the three and six months ended March 31, 2022, respectively. Our effective income tax rate is affected by state taxes, permanent differences, and tax credits, including the FICA tip credit, for both years, as presented below. For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 Federal statutory income tax expense 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.0 % 2.9 % 4.0 % 2.9 % Permanent differences 0.6 % 0.5 % 0.5 % 0.4 % Tax credits (3.8) % (3.1) % (3.2) % (2.6) % Other — % 2.1 % 0.1 % 0.8 % Total income tax expense 21.8 % 23.4 % 22.4 % 22.6 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters Texas Patron Tax A declaratory judgment action was brought by five operating subsidiaries of the Company to challenge a Texas Comptroller administrative rule related to the $5 per customer Patron Tax Fee assessed against Sexually Oriented Businesses. An administrative rule attempted to expand the fee to cover venues featuring dancers using latex cover as well as traditional nude entertainment. The administrative rule was challenged on both constitutional and statutory grounds. On November 19, 2018, the Court issued an order that a key aspect of the administrative rule is invalid based on it exceeding the scope of the Comptroller’s authority. On March 6, 2020, the U.S. District Court for the Western District of Texas, Austin Division, ruled that the Texas Patron Tax is unconstitutional as it has been applied and enforced by the Comptroller. The State of Texas appealed to the Fifth Circuit Court of Appeals, who affirmed that the Texas Patron Fee is unconstitutional as applied. The State of Texas next sought review from the Supreme Court, but the high court declined to take the case. The lawsuit was sent back to the trial court for post-trial proceedings, which resulted in the award of attorneys' fees to the operating subsidiaries. Pursuant to the rulings, the Texas Patron Fee is unconstitutional as applied to clubs featuring dancers using latex cover. Indemnity Insurance Corporation As previously reported, the Company and its subsidiaries were insured under a liability policy issued by Indemnity Insurance Corporation, RRG (“IIC”) through October 25, 2013. The Company and its subsidiaries changed insurance companies on that date. On November 7, 2013, the Court of Chancery of the State of Delaware entered a Rehabilitation and Injunction Order (“Rehabilitation Order”), which declared IIC impaired, insolvent and in an unsafe condition and placed IIC under the supervision of the Insurance Commissioner of the State of Delaware (“Commissioner”) in her capacity as receiver (“Receiver”). The Rehabilitation Order empowered the Commissioner to rehabilitate IIC through a variety of means, including gathering assets and marshaling those assets as necessary. Further, the order stayed or abated pending lawsuits involving IIC as the insurer until May 6, 2014. On April 10, 2014, the Court of Chancery of the State of Delaware entered a Liquidation and Injunction Order With Bar Date (“Liquidation Order”), which ordered the liquidation of IIC and terminated all insurance policies or contracts of insurance issued by IIC. The Liquidation Order further ordered that all claims against IIC must have been filed with the Receiver before the close of business on January 16, 2015 and that all pending lawsuits involving IIC as the insurer were further stayed or abated until October 7, 2014. As a result, the Company and its subsidiaries no longer had insurance coverage under the liability policy with IIC. The Company has retained counsel to defend against and evaluate these claims and lawsuits. We are funding 100% of the costs of litigation and will seek reimbursement from the bankruptcy receiver. The Company filed the appropriate claims against IIC with the Receiver before the January 16, 2015 deadline and has provided updates as requested; however, there are no assurances of any recovery from these claims. It is unknown at this time what effect this uncertainty will have on the Company. As previously stated, since October 25, 2013, the Company has obtained general liability coverage from other insurers, which have covered and/or will cover any claims arising from actions after that date. As of March 31, 2023, we have 1 remaining unresolved claim out of the original 71 claims. Shareholder Derivative Action On January 21, 2022, Shiva Stein and Kevin McCarty filed a shareholder derivative action in the Southern District of Texas, Houston Division against former director Nourdean Anakar, Yura Barabash, former director Steven L. Jenkins, Eric Langan, Luke Lirot, former CFO Phillip K. Marshall, Elaine J. Martin, Allan Priaulx, and Travis Reese as defendants, as well as against RCI Hospitality Holdings, Inc. as nominal defendant. The action, styled Stein v. Anakar, et al., No. 4:22-mc-00149 (S.D. Tex.), alleges claims for breach of fiduciary duty based on alleged dissemination of inaccurate information and failure to maintain internal controls. These allegations are substantively similar to claims asserted in a prior securities class action that was settled in August of 2022 and a prior derivative action that was dismissed in June of 2021. Plaintiffs do not demand any specific amount of damages, which if awarded would be paid by the individual defendants to the Company. Plaintiffs also seek unspecified changes to the Company’s internal controls. On April 2, 2022, the Company and its current and former officers and directors named in the shareholder derivative complaint filed Motions to Dismiss. On March 31, 2023, the Court denied the Company’s motion, which was based on its rejections of the shareholders’ pre-litigation demands that the Company sue the individual defendants; granted the motion of two current individuals who were not members of the Company’s Board of Directors at the time of the alleged events at issue, Ms. Martin and Mr. Priaulx; and denied the motions of the remaining defendants. RCI intends to vigorously defend its position. Other On June 23, 2014, Mark H. Dupray and Ashlee Dupray filed a lawsuit against Pedro Antonio Panameno and our subsidiary JAI Dining Services (Phoenix) Inc. (“JAI Phoenix”) in the Superior Court of Arizona for Maricopa County. The suit alleged that Mr. Panameno injured Mr. Dupray in a traffic accident after being served alcohol at an establishment operated by JAI Phoenix. The suit alleged that JAI Phoenix was liable under theories of common law dram shop negligence and dram shop negligence per se. After a jury trial proceeded to a verdict in favor of the plaintiffs against both defendants, in April 2017 the Court entered a judgment under which JAI Phoenix’s share of compensatory damages is approximately $1.4 million and its share of punitive damages is $4.0 million. In May 2017, JAI Phoenix filed a motion for judgment as a matter of law or, in the alternative, motion for new trial. The Court denied this motion in August 2017. In September 2017, JAI Phoenix filed a notice of appeal. In June 2018, the matter was heard by the Arizona Court of Appeals. On November 15, 2018 the Court of Appeals vacated the jury’s verdict and remanded the case to the trial court. It is anticipated that a new trial will occur at some point in the future. JAI Phoenix will continue to vigorously defend itself. As set forth in the risk factors as disclosed in this report, the adult entertainment industry standard is to classify adult entertainers as independent contractors, not employees. While we take steps to ensure that our adult entertainers are deemed independent contractors, from time to time, we are named in lawsuits related to the alleged misclassification of entertainers. Claims are brought under both federal and where applicable, state law. Based on the industry standard, the manner in which the independent contractor entertainers are treated at the clubs, and the entertainer license agreements governing the entertainer’s work at the clubs, the Company believes that these lawsuits are without merit. Lawsuits are handled by attorneys with an expertise in the relevant law and are defended vigorously. In March 2023, the New York State Department of Labor assessed a final judgment against one of our subsidiaries in a state unemployment tax matter for the years 2009-2022. The assessment of $2.8 million, which was recorded by the Company during the quarter ended March 31, 2023, was issued in final notice by the NY DOL after several appeals were denied by the Supreme Court of the State of New York, Appellate Division, Third Department. General In the regular course of business affairs and operations, we are subject to possible loss contingencies arising from third-party litigation and federal, state, and local environmental, labor, health and safety laws and regulations. We assess the probability that we could incur liability in connection with certain of these lawsuits. Our assessments are made in accordance with generally accepted accounting principles, as codified in ASC 450-20, and is not an admission of any liability on the part of the Company or any of its subsidiaries. In certain cases that are in the early stages and in light of the uncertainties surrounding them, we do not currently possess sufficient information to determine a range of reasonably possible liability. In matters where there is insurance coverage, in the event we incur any liability, we believe it is unlikely we would incur losses in connection with these claims in excess of our insurance coverage. Settlements of lawsuits for the three and six months ended March 31, 2023 amount to $3.1 million and $3.1 million, respectively, and for the three and six months ended March 31, 2022 amount to approximately $385,000 and $577,000, respectively. As of March 31, 2023 and September 30, 2022, the Company has accrued $3.1 million and $246,000 in accrued liabilities, respectively, related to settlement of lawsuits. |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company owns and operates adult nightclubs and Bombshells Restaurants and Bars. The Company has identified such segments based on management responsibility and the nature of the Company’s products, services and costs. There are no major distinctions in geographical areas served as all operations are in the United States. The Company measures segment profit (loss) as income (loss) from operations. Segment assets are those assets controlled by each reportable segment. The Other category below includes our media and energy drink divisions that are not significant to the unaudited condensed consolidated financial statements. Below is the financial information related to the Company’s segments (in thousands): For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 Revenues (from external customers) Nightclubs $ 57,031 $ 48,174 $ 113,356 $ 94,955 Bombshells 14,315 15,333 27,746 30,104 Other 171 185 383 469 $ 71,517 $ 63,692 $ 141,485 $ 125,528 Income (loss) from operations Nightclubs $ 17,995 $ 19,126 $ 40,735 $ 37,862 Bombshells 1,775 3,468 3,622 6,270 Other (168) (34) (353) (77) Corporate (6,175) (5,479) (13,679) (11,063) $ 13,427 $ 17,081 $ 30,325 $ 32,992 Depreciation and amortization Nightclubs $ 2,464 $ 2,206 $ 4,949 $ 3,753 Bombshells 931 454 1,389 883 Other 63 7 126 13 Corporate 302 210 603 422 $ 3,760 $ 2,877 $ 7,067 $ 5,071 Capital expenditures Nightclubs $ 1,214 $ 1,662 $ 5,358 $ 10,890 Bombshells 5,508 1,901 13,827 2,205 Other 41 359 78 548 Corporate 1,574 218 1,627 347 $ 8,337 $ 4,140 $ 20,890 $ 13,990 March 31, 2023 September 30, 2022 Total assets Nightclubs $ 503,697 $ 437,096 Bombshells 76,171 62,021 Other 2,751 2,635 Corporate 38,512 28,986 $ 621,131 $ 530,738 Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs and Corporate segments for the three months ended March 31, 2023 amounting to $3.9 million and $31,000, respectively, and for the six months ended March 31, 2023 amounting to $7.6 million and $262,000, respectively; and intercompany sales of Robust Energy Drink included in Other segment for the three and six months ended March 31, 2023 amounting to $78,000 and $115,000, respectively. Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs and Corporate segments for the three months ended March 31, 2022 amounting to $3.3 million and $31,000, and for the six months ended March 31, 2022 amounting to $6.5 million and $199,000, respectively; and intercompany sales of Robust Energy Drink included in Other segment for the three and six months ended March 31, 2022 amounting to $53,000 and $122,000, respectively. These intercompany revenue amounts are eliminated upon consolidation. General corporate expenses include corporate salaries, health insurance and social security taxes for officers, legal, accounting and information technology employees, corporate taxes and insurance, legal and accounting fees, depreciation and other corporate costs such as automobile and travel costs. Management considers these to be non-allocable costs for segment purposes. Certain real estate assets previously wholly assigned to Bombshells have been subdivided and allocated to other future development or investment projects. Accordingly, those asset costs have been transferred out of the Bombshells segment. As of March 31, 2023, we reclassified $9.4 million of goodwill from Corporate to Nightclubs and $4.7 million of prepaid insurance to $3.7 million in Nightclubs, $961,000 in Bombshells, and $29,000 in Other. As of September 30, 2022, we reclassified $9.0 million of goodwill from Corporate to Nightclubs to conform to current year presentation. See Note 1. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Presently, our Chairman and President, Eric Langan, personally guarantees all of the commercial bank indebtedness of the Company. Mr. Langan receives no compensation or other direct financial benefit for any of the guarantees. The balance of our commercial bank indebtedness, net of debt discount and issuance costs, as of March 31, 2023 and September 30, 2022, was $119.1 million and $115.1 million, respectively. Included in the $17.0 million borrowing on October 12, 2021 are notes borrowed from related parties—one note for $500,000 (Ed Anakar, an employee of the Company and brother of our former director Nourdean Anakar) and another note for $150,000 (from a brother of Company CFO, Bradley Chhay) in which the terms of the notes are the same as the rest of the lender group. We used the services of Nottingham Creations, and previously Sherwood Forest Creations, LLC, both furniture fabrication companies that manufacture tables, chairs and other furnishings for our Bombshells locations, as well as providing ongoing maintenance. Nottingham Creations is owned by a brother of Eric Langan (as was Sherwood Forest). Amounts billed to us for goods and services provided by Nottingham Creations and Sherwood Forest were $188,285 and $188,285 during the three and six months ended March 31, 2023, respectively, and $3,112 and $27,149 during the three and six months ended March 31, 2022, respectively. As of March 31, 2023 and September 30, 2022, we owed Nottingham Creations and Sherwood Forest $110,809 and $92,808, respectively, in unpaid billings. TW Mechanical LLC provided plumbing and HVAC services to both a third-party general contractor providing construction services to the Company, as well as directly to the Company during fiscal 2023 and 2022. A son-in-law of Eric Langan owns a 50% interest in TW Mechanical. Amounts billed by TW Mechanical to the third-party general |
Leases
Leases | 6 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Total lease expense included in selling, general and administrative expenses in our unaudited condensed consolidated statements of income for the three and six months ended March 31, 2023 and 2022 is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Operating lease expense – fixed payments $ 1,288 $ 1,136 $ 2,547 $ 2,267 Variable lease expense 359 233 786 567 Short-term and other lease expense (includes $63 and $58 recorded in advertising and marketing for the three months ended March 31, 2023 and 2022, respectively, and $127 and $130 for the six months ended March 31, 2023 and 2022, respectively; and $138 and $107 recorded in repairs and maintenance for the three months ended March 31, 2023 and 2022, respectively, and $265 and $190 for the six months ended March 31, 2023 and 2022, respectively; see Note 6) 319 368 586 698 Sublease income — (1) — (3) Total lease expense, net $ 1,966 $ 1,736 $ 3,919 $ 3,529 Other information: Operating cash outflows from operating leases $ 1,920 $ 1,690 $ 3,830 $ 3,439 Weighted average remaining lease term – operating leases 10.9 years 12.0 years Weighted average discount rate – operating leases 5.7 % 5.6 % Future maturities of operating lease liabilities as of March 31, 2023 are as follows (in thousands): Principal Payments Interest Payments Total Payments April 2023 - March 2024 $ 2,951 $ 2,189 $ 5,140 April 2024 - March 2025 3,185 2,016 5,201 April 2025 - March 2026 3,460 1,829 5,289 April 2026 - March 2027 3,665 1,626 5,291 April 2027 - March 2028 3,303 1,423 4,726 Thereafter 22,816 5,313 28,129 $ 39,380 $ 14,396 $ 53,776 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited condensed consolidated financial statements of RCI Hospitality Holdings, Inc. (the “Company,” “RCIHH,” “we,” or “us”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP” or “U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They do not include all information and footnotes required by GAAP for complete financial statements. The September 30, 2022 consolidated balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended September 30, 2022 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on December 14, 2022. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair statement of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2023. |
Recent Accounting Standards and Pronouncements | Recent Accounting Standards and Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU amends ASC 805 to require acquiring entities to apply ASC 606 to recognize and measure contract assets and contract liabilities in business combinations. The ASU is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are still evaluating the impact of this ASU but we do not expect it to have a material impact on our consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The amendments of this ASU clarify that an entity should measure the fair value of an equity security subject to contractual sale restriction the same way it measures an identical equity security that is not subject to such a restriction. The FASB said the contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not affect its fair value. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. We are still evaluating the impact of this ASU on our consolidated financial statements. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements, which amends certain provisions of ASC 842 that apply to arrangements between related parties under common control. The ASU requires all companies to amortize leasehold improvements associated with common control leases over the asset's useful life to the common control group regardless of the lease term. It also allows private and certain not-for-profit entities to use the written terms and conditions of an agreement to account for common control leases without further assessing the legal enforceability of those terms. The guidance is effective for all entities in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. We are still evaluating the impact of this ASU on our consolidated financial statements. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following is our preliminary allocation of the fair value of the acquisition price (in thousands) as of October 26, 2022: Current assets $ 64 Property and equipment 4,884 Licenses 1,170 Tradename 340 Accrued liability (95) Deferred tax liability (374) Total net assets acquired 5,989 Goodwill 2,916 Acquisition price fair value $ 8,905 |
Schedule of Unaudited Pro Forma Combined Results of Operations | The following table presents the unaudited pro forma combined results of operations of the Company and the five acquired clubs and related assets as though the acquisition occurred at the beginning of fiscal 2022 (in thousands, except per share amount and number of shares): For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 Pro forma revenues $ 77,292 $ 69,256 $ 154,424 $ 137,029 Pro forma net income attributable to RCIHH common stockholders $ 8,303 $ 12,444 $ 17,213 $ 24,849 Pro forma earnings per share - basic and diluted $ 0.88 $ 1.28 $ 1.83 $ 2.58 Pro forma weighted average shares used in computing earnings per share - basic and diluted 9,430,225 9,689,085 9,430,241 9,647,854 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Segment Revenues | Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 11), are shown below (in thousands): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 22,191 $ 7,945 $ — $ 30,136 $ 18,673 $ 8,662 $ — $ 27,335 Sales of food and merchandise 4,823 6,182 — 11,005 4,498 6,662 — 11,160 Service revenues 25,686 4 — 25,690 21,501 — — 21,501 Other revenues 4,331 184 171 4,686 3,502 9 185 3,696 $ 57,031 $ 14,315 $ 171 $ 71,517 $ 48,174 $ 15,333 $ 185 $ 63,692 Recognized at a point in time $ 56,577 $ 14,274 $ 127 $ 70,978 $ 47,722 $ 15,332 $ 185 $ 63,239 Recognized over time 454 * 41 44 539 452 * 1 — 453 $ 57,031 $ 14,315 $ 171 $ 71,517 $ 48,174 $ 15,333 $ 185 $ 63,692 Six Months Ended March 31, 2023 Six Months Ended March 31, 2022 Nightclubs Bombshells Other Total Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 44,289 $ 15,497 $ — $ 59,786 $ 36,840 $ 16,926 $ — $ 53,766 Sales of food and merchandise 9,417 11,935 — 21,352 9,087 12,967 — 22,054 Service revenues 51,219 34 — 51,253 42,185 192 — 42,377 Other revenues 8,431 280 383 9,094 6,843 19 469 7,331 $ 113,356 $ 27,746 $ 383 $ 141,485 $ 94,955 $ 30,104 $ 469 $ 125,528 Recognized at a point in time $ 112,495 $ 27,702 $ 338 $ 140,535 $ 94,066 $ 30,102 $ 468 $ 124,636 Recognized over time 861 * 44 45 950 889 * 2 1 892 $ 113,356 $ 27,746 $ 383 $ 141,485 $ 94,955 $ 30,104 $ 469 $ 125,528 * Lease revenue (included in Other Revenues) as covered by ASC 842. All other revenues are covered by ASC 606. |
Schedule of Reconciliation of Contract Liabilities with Customers | A reconciliation of contract liabilities with customers is presented below (in thousands): Balance at September 30, 2022 Net Consideration Recognized in Balance at March 31, 2023 Ad revenue $ 82 $ 284 $ (239) $ 127 Expo revenue 8 405 — 413 Franchise fees and other 144 (12) (44) 88 $ 234 $ 677 $ (283) $ 628 |
Selected Account Information (T
Selected Account Information (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Selected Account Information [Abstract] | |
Schedule of Accounts Receivable, Net | The components of accounts receivable, net are as follows (in thousands): March 31, 2023 September 30, 2022 Credit card receivables $ 2,768 $ 2,687 Income tax refundable 1,773 2,979 ATM in-transit 1,006 819 Other (net of allowance for doubtful accounts of $85 and $30, respectively) 1,208 2,025 Total accounts receivable, net $ 6,755 $ 8,510 |
Schedule of Components of Prepaid Expenses and Other Current Assets | The components of prepaid expenses and other current assets are as follows (in thousands): March 31, 2023 September 30, 2022 Prepaid insurance $ 4,960 $ 191 Prepaid legal 32 61 Prepaid taxes and licenses 689 391 Prepaid rent 150 296 Other 1,039 560 Total prepaid expenses and other current assets $ 6,870 $ 1,499 |
Schedule of Reconciliation of Goodwill | A reconciliation of goodwill as of March 31, 2023 and September 30, 2022, which is substantially all in Nightclubs segment, is as follows (in thousands): Gross Accumulated Impairment Net Balance at September 30, 2022 $ 88,921 $ 21,154 $ 67,767 Acquisitions (see Note 4) 16,946 — 16,946 Impairment — 662 (662) Balance at March 31, 2023 $ 105,867 $ 21,816 $ 84,051 |
Schedule of Intangible Assets and Goodwill | The components of intangible assets, net are as follows (in thousands): March 31, 2023 September 30, 2022 Indefinite-lived: Licenses $ 105,142 $ 103,972 Trademarks 24,659 13,119 Domain names 23 23 Definite-lived: Licenses 24,780 25,962 Leases acquired in-place 231 117 Noncompete agreements 25 55 Favorable leases 853 78 Software 618 723 Total intangible assets, net $ 156,331 $ 144,049 |
Schedule of Accrued Liabilities | The components of accrued liabilities are as follows (in thousands): March 31, 2023 September 30, 2022 Insurance $ 4,694 $ 30 Sales and liquor taxes 2,400 2,227 Payroll and related costs 4,171 3,186 Property taxes 1,813 2,618 Interest 698 499 Patron tax 464 467 Unearned revenues 628 234 Lawsuit settlement 3,109 246 Other 2,981 1,821 Total accrued liabilities $ 20,958 $ 11,328 |
Schedule of Selling, General and Administrative Expenses | The components of selling, general and administrative expenses are as follows (in thousands): For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 Taxes and permits $ 2,739 $ 2,361 $ 5,423 $ 4,597 Advertising and marketing 2,731 2,248 5,401 4,631 Supplies and services 2,657 2,175 5,081 4,155 Insurance 2,238 2,481 4,820 4,876 Legal 1,296 898 2,281 1,958 Lease 1,765 1,572 3,527 3,212 Charge card fees 1,683 1,466 3,580 2,797 Utilities 1,353 1,108 2,624 2,043 Security 1,308 1,050 2,472 2,137 Stock-based compensation 706 — 1,647 — Accounting and professional fees 657 622 2,175 1,968 Repairs and maintenance 1,207 903 2,371 1,628 Other 1,686 1,553 3,356 2,921 Total selling, general and administrative expenses $ 22,026 $ 18,437 $ 44,758 $ 36,923 |
Schedule of Components of Other Charges (Gains) | The components of other charges (gains), net are as follows (in thousands): For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 Impairment of assets $ 662 $ — $ 662 $ — Settlement of lawsuits 3,120 385 3,120 577 Loss (gain) on disposal of businesses and assets 3 (58) (587) (400) Gain on insurance (27) (320) (91) (321) Other charges (gains), net $ 3,758 $ 7 $ 3,104 $ (144) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rate is affected by state taxes, permanent differences, and tax credits, including the FICA tip credit, for both years, as presented below. For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 Federal statutory income tax expense 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.0 % 2.9 % 4.0 % 2.9 % Permanent differences 0.6 % 0.5 % 0.5 % 0.4 % Tax credits (3.8) % (3.1) % (3.2) % (2.6) % Other — % 2.1 % 0.1 % 0.8 % Total income tax expense 21.8 % 23.4 % 22.4 % 22.6 % |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Below is the financial information related to the Company’s segments (in thousands): For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 Revenues (from external customers) Nightclubs $ 57,031 $ 48,174 $ 113,356 $ 94,955 Bombshells 14,315 15,333 27,746 30,104 Other 171 185 383 469 $ 71,517 $ 63,692 $ 141,485 $ 125,528 Income (loss) from operations Nightclubs $ 17,995 $ 19,126 $ 40,735 $ 37,862 Bombshells 1,775 3,468 3,622 6,270 Other (168) (34) (353) (77) Corporate (6,175) (5,479) (13,679) (11,063) $ 13,427 $ 17,081 $ 30,325 $ 32,992 Depreciation and amortization Nightclubs $ 2,464 $ 2,206 $ 4,949 $ 3,753 Bombshells 931 454 1,389 883 Other 63 7 126 13 Corporate 302 210 603 422 $ 3,760 $ 2,877 $ 7,067 $ 5,071 Capital expenditures Nightclubs $ 1,214 $ 1,662 $ 5,358 $ 10,890 Bombshells 5,508 1,901 13,827 2,205 Other 41 359 78 548 Corporate 1,574 218 1,627 347 $ 8,337 $ 4,140 $ 20,890 $ 13,990 March 31, 2023 September 30, 2022 Total assets Nightclubs $ 503,697 $ 437,096 Bombshells 76,171 62,021 Other 2,751 2,635 Corporate 38,512 28,986 $ 621,131 $ 530,738 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Expense | Total lease expense included in selling, general and administrative expenses in our unaudited condensed consolidated statements of income for the three and six months ended March 31, 2023 and 2022 is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Operating lease expense – fixed payments $ 1,288 $ 1,136 $ 2,547 $ 2,267 Variable lease expense 359 233 786 567 Short-term and other lease expense (includes $63 and $58 recorded in advertising and marketing for the three months ended March 31, 2023 and 2022, respectively, and $127 and $130 for the six months ended March 31, 2023 and 2022, respectively; and $138 and $107 recorded in repairs and maintenance for the three months ended March 31, 2023 and 2022, respectively, and $265 and $190 for the six months ended March 31, 2023 and 2022, respectively; see Note 6) 319 368 586 698 Sublease income — (1) — (3) Total lease expense, net $ 1,966 $ 1,736 $ 3,919 $ 3,529 Other information: Operating cash outflows from operating leases $ 1,920 $ 1,690 $ 3,830 $ 3,439 Weighted average remaining lease term – operating leases 10.9 years 12.0 years Weighted average discount rate – operating leases 5.7 % 5.6 % |
Schedule of Future Maturities of Lease Liabilities | Future maturities of operating lease liabilities as of March 31, 2023 are as follows (in thousands): Principal Payments Interest Payments Total Payments April 2023 - March 2024 $ 2,951 $ 2,189 $ 5,140 April 2024 - March 2025 3,185 2,016 5,201 April 2025 - March 2026 3,460 1,829 5,289 April 2026 - March 2027 3,665 1,626 5,291 April 2027 - March 2028 3,303 1,423 4,726 Thereafter 22,816 5,313 28,129 $ 39,380 $ 14,396 $ 53,776 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||||||||||
Mar. 16, 2023 USD ($) asset_purchase_agreement stock_purchase_agreement note property club $ / shares shares | Mar. 09, 2023 USD ($) | Feb. 07, 2023 USD ($) note seller | Feb. 06, 2023 USD ($) | Dec. 28, 2022 USD ($) | Dec. 20, 2022 USD ($) | Dec. 16, 2022 USD ($) building | Dec. 05, 2022 USD ($) | Nov. 18, 2022 USD ($) | Nov. 08, 2022 USD ($) | Oct. 26, 2022 USD ($) | Oct. 11, 2022 USD ($) | Oct. 10, 2022 USD ($) | Mar. 31, 2023 USD ($) note shares | Mar. 31, 2022 USD ($) | Dec. 31, 2021 shares | Mar. 31, 2023 USD ($) note shares | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||||||||||||||
Total revenues | $ 71,517 | $ 63,692 | $ 141,485 | $ 125,528 | |||||||||||||||
Income (loss) from operations | 13,427 | $ 17,081 | 30,325 | $ 32,992 | |||||||||||||||
Property classified as held for sale | $ 1,000 | ||||||||||||||||||
Proceeds from sale of property held-for-sale | 1,700 | ||||||||||||||||||
Portion of proceeds from sale of property used to pay off the loan related to the property | $ 1,200 | ||||||||||||||||||
Goodwill | $ 84,051 | 84,051 | $ 67,767 | ||||||||||||||||
Common Stock | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Issuance of common shares for business combination (in shares) | shares | 200,000 | 500,000 | |||||||||||||||||
Notes Payable to Banks | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Debt instrument, term | 18 months | 18 months | |||||||||||||||||
Debt instrument, face amount | $ 1,500 | $ 2,300 | |||||||||||||||||
Line of Credit | Revolving Credit Facility | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Debt instrument, term | 24 months | ||||||||||||||||||
Debt instrument, face amount | $ 10,000 | ||||||||||||||||||
Six Seller Financed Promissory Note | Notes Payable to Banks | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Debt instrument, interest rate, stated percentage | 7% | ||||||||||||||||||
Debt instrument, term | 24 months | ||||||||||||||||||
Number of seller-financed notes | note | 6 | ||||||||||||||||||
Debt instrument, face amount | $ 2,000 | ||||||||||||||||||
Nine Secured Promissory Notes | Notes Payable to Banks | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Debt instrument, interest rate, stated percentage | 7% | ||||||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||||||
Number of seller-financed notes | note | 9 | ||||||||||||||||||
Debt instrument, face amount | $ 25,500 | ||||||||||||||||||
Hangar in Arcola, Texas | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | $ 754 | ||||||||||||||||||
Club In Dickinson, Texas | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | $ 9,000 | ||||||||||||||||||
Preliminary fair value of acquisition | $ 8,900 | ||||||||||||||||||
Percentage of voting interests acquired | 100% | ||||||||||||||||||
Recognized goodwill deductible for tax purposes | $ 1,500 | ||||||||||||||||||
Business combination, acquisition related costs | $ 0 | 23 | |||||||||||||||||
Total revenues | 554 | 901 | |||||||||||||||||
Income (loss) from operations | 103 | 160 | |||||||||||||||||
Property and equipment | 4,884 | ||||||||||||||||||
Purchase price allocated to current assets | 64 | ||||||||||||||||||
Goodwill | 2,916 | ||||||||||||||||||
Club In Dickinson, Texas - Adult Entertainment Business | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | 2,500 | ||||||||||||||||||
Payments to acquire businesses | 1,500 | ||||||||||||||||||
Club In Dickinson, Texas - Adult Entertainment Business | 6% Fifteen-Year Promissory Note | Notes Payable to Banks | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Liabilities incurred | $ 5,000 | ||||||||||||||||||
Debt instrument, interest rate, stated percentage | 6% | ||||||||||||||||||
Debt instrument, term | 15 years | ||||||||||||||||||
Debt instrument, face amount | $ 5,000 | ||||||||||||||||||
Club In Dickinson, Texas - Real Estate Property | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | $ 6,500 | ||||||||||||||||||
Bombshells Location In San Antonio, Texas | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | 3,200 | ||||||||||||||||||
Payments to acquire businesses | $ 1,200 | ||||||||||||||||||
Percentage of voting interests acquired | 100% | ||||||||||||||||||
Property and equipment | $ 2,700 | ||||||||||||||||||
Number of sellers | seller | 6 | ||||||||||||||||||
Number of seller-financed notes | note | 6 | ||||||||||||||||||
Inventory | $ 61 | ||||||||||||||||||
Lease intangible and right-of-use assets, net of lease liability | 480 | ||||||||||||||||||
Bombshells Location In San Antonio, Texas | Six Seller Financed Promissory Note | Notes Payable to Banks | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Debt instrument, face amount | $ 2,000 | ||||||||||||||||||
Baby Dolls-Chicas Locas | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | 66,500 | ||||||||||||||||||
Payments to acquire businesses | 25,000 | ||||||||||||||||||
Business combination, acquisition related costs | 280 | 292 | |||||||||||||||||
Total revenues | 1,200 | 1,200 | |||||||||||||||||
Income (loss) from operations | 154 | $ 154 | |||||||||||||||||
Property and equipment | $ 41,600 | ||||||||||||||||||
Number of clubs acquired | club | 5 | ||||||||||||||||||
Number of real estate properties acquired | property | 5 | ||||||||||||||||||
Business acquisition, share price (in dollars per share) | $ / shares | $ 80 | ||||||||||||||||||
Number of asset purchase agreements | asset_purchase_agreement | 4 | ||||||||||||||||||
Number of stock purchase agreements | stock_purchase_agreement | 1 | ||||||||||||||||||
Purchase price allocated to current assets | $ 632 | ||||||||||||||||||
Identifiable intangibles | 11,200 | ||||||||||||||||||
Accounts payable | 632 | ||||||||||||||||||
Goodwill | $ 14,000 | ||||||||||||||||||
Baby Dolls-Chicas Locas | Common Stock | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Issuance of common shares for business combination (in shares) | shares | 200,000 | ||||||||||||||||||
Common stock issued as partial consideration | shares | 200,000 | ||||||||||||||||||
Baby Dolls-Chicas Locas | Line of Credit | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Debt instrument, face amount | $ 10,000 | ||||||||||||||||||
Baby Dolls-Chicas Locas | Line of Credit | Revolving Credit Facility | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Debt instrument, face amount | $ 10,000 | $ 10,000 | |||||||||||||||||
Baby Dolls-Chicas Locas | 7% Seller Financing Promissory Notes | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Consideration transferred, other | $ 25,500 | ||||||||||||||||||
Baby Dolls-Chicas Locas | Nine Secured Promissory Notes | Notes Payable to Banks | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Number of seller-financed notes | note | 9 | 9 | |||||||||||||||||
Real Estate in Lubbock, Texas | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | 3,400 | ||||||||||||||||||
Payments to acquire businesses | 1,100 | ||||||||||||||||||
Consideration transferred, other | $ 2,300 | ||||||||||||||||||
Non-income-producing Corporate Property | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Payments to acquire businesses | $ 458 | ||||||||||||||||||
Real Estate in Aurora, Colorado | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | $ 850 | ||||||||||||||||||
Real Estate in Central City, Colorado | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | $ 2,400 | ||||||||||||||||||
Real Estate In Fort Worth, Texas | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | $ 2,400 | ||||||||||||||||||
Number of buildings purchased in transaction | building | 2 | ||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, consideration transferred | $ 5,300 | ||||||||||||||||||
Payments to acquire businesses | 1,900 | ||||||||||||||||||
Business combination, acquisition related costs | 102 | ||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | Leases acquired in-place | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Identifiable intangibles | 565 | ||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | Land | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Property and equipment | 2,100 | ||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | Building and Building Improvements | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Property and equipment | 2,600 | ||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | Furniture, Fixtures And Equipment | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Property and equipment | 98 | ||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | 6.67% Five-Year Promissory Note | Notes Payable to Banks | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Liabilities incurred | $ 3,325 | ||||||||||||||||||
Debt instrument, interest rate, stated percentage | 6.67% | ||||||||||||||||||
Debt instrument, term | 5 years | ||||||||||||||||||
Debt instrument, face amount | $ 3,325 | ||||||||||||||||||
Central City CO Casino Property 2 | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Payments to acquire businesses | $ 2,200 | ||||||||||||||||||
Baby Dolls-Chicas Locas | 7% Seller Financing Promissory Notes | Notes Payable to Banks | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Debt instrument, interest rate, stated percentage | 7% | ||||||||||||||||||
Debt instrument, term | 10 years |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Schedule of Allocation of Fair Value of the Acquisition Price (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Oct. 26, 2022 | Sep. 30, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 84,051 | $ 67,767 | |
Club In Dickinson, Texas | |||
Business Acquisition [Line Items] | |||
Current assets | $ 64 | ||
Property and equipment | 4,884 | ||
Accrued liability | (95) | ||
Deferred tax liability | (374) | ||
Total net assets acquired | 5,989 | ||
Goodwill | 2,916 | ||
Acquisition price fair value | 8,905 | ||
Club In Dickinson, Texas | Licenses | |||
Business Acquisition [Line Items] | |||
Indefinite-lived intangible assets | 1,170 | ||
Club In Dickinson, Texas | Trade Names | |||
Business Acquisition [Line Items] | |||
Indefinite-lived intangible assets | $ 340 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Schedule of Unaudited Pro Forma Combined Results of Operations (Details) - Baby Dolls-Chicas Locas - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Pro forma revenues | $ 77,292 | $ 69,256 | $ 154,424 | $ 137,029 |
Pro forma net income attributable to RCIHH common stockholders | $ 8,303 | $ 12,444 | $ 17,213 | $ 24,849 |
Pro forma earnings per share – basic (in dollars per share) | $ 0.88 | $ 1.28 | $ 1.83 | $ 2.58 |
Pro forma earnings per share – diluted (in dollars per share) | $ 0.88 | $ 1.28 | $ 1.83 | $ 2.58 |
Pro forma weighted average number of common shares outstanding - diluted (in shares) | 9,430,225 | 9,689,085 | 9,430,241 | 9,647,854 |
Pro forma weighted average number of common shares outstanding - basic (in shares) | 9,430,225 | 9,689,085 | 9,430,241 | 9,647,854 |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregation of Segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 71,517 | $ 63,692 | $ 141,485 | $ 125,528 |
Recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 70,978 | 63,239 | 140,535 | 124,636 |
Recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 539 | 453 | 950 | 892 |
Sales of alcoholic beverages | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 30,136 | 27,335 | 59,786 | 53,766 |
Sales of food and merchandise | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 11,005 | 11,160 | 21,352 | 22,054 |
Service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 25,690 | 21,501 | 51,253 | 42,377 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,686 | 3,696 | 9,094 | 7,331 |
Nightclubs | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 57,031 | 48,174 | 113,356 | 94,955 |
Nightclubs | Recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 56,577 | 47,722 | 112,495 | 94,066 |
Nightclubs | Recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 454 | 452 | 861 | 889 |
Nightclubs | Sales of alcoholic beverages | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 22,191 | 18,673 | 44,289 | 36,840 |
Nightclubs | Sales of food and merchandise | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,823 | 4,498 | 9,417 | 9,087 |
Nightclubs | Service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 25,686 | 21,501 | 51,219 | 42,185 |
Nightclubs | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,331 | 3,502 | 8,431 | 6,843 |
Bombshells | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 14,315 | 15,333 | 27,746 | 30,104 |
Bombshells | Recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 14,274 | 15,332 | 27,702 | 30,102 |
Bombshells | Recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 41 | 1 | 44 | 2 |
Bombshells | Sales of alcoholic beverages | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 7,945 | 8,662 | 15,497 | 16,926 |
Bombshells | Sales of food and merchandise | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 6,182 | 6,662 | 11,935 | 12,967 |
Bombshells | Service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4 | 0 | 34 | 192 |
Bombshells | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 184 | 9 | 280 | 19 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 171 | 185 | 383 | 469 |
Other | Recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 127 | 185 | 338 | 468 |
Other | Recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 44 | 0 | 45 | 1 |
Other | Sales of alcoholic beverages | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | Sales of food and merchandise | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | Service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 171 | $ 185 | $ 383 | $ 469 |
Revenues - Schedule of Reconcil
Revenues - Schedule of Reconciliation of Contract Liabilities with Customers (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2023 USD ($) | |
Contract With Customer Liability [Roll Forward] | |
Contract liabilities with customers, beginning | $ 234 |
Net Consideration Received (Refunded) | 677 |
Recognized in Revenue | (283) |
Contract liabilities with customers, ending | 628 |
Ad revenue | |
Contract With Customer Liability [Roll Forward] | |
Contract liabilities with customers, beginning | 82 |
Net Consideration Received (Refunded) | 284 |
Recognized in Revenue | (239) |
Contract liabilities with customers, ending | 127 |
Expo revenue | |
Contract With Customer Liability [Roll Forward] | |
Contract liabilities with customers, beginning | 8 |
Net Consideration Received (Refunded) | 405 |
Recognized in Revenue | 0 |
Contract liabilities with customers, ending | 413 |
Franchise fees and other | |
Contract With Customer Liability [Roll Forward] | |
Contract liabilities with customers, beginning | 144 |
Net Consideration Received (Refunded) | (12) |
Recognized in Revenue | (44) |
Contract liabilities with customers, ending | $ 88 |
Selected Account Information -
Selected Account Information - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Selected Account Information [Abstract] | ||
Credit card receivables | $ 2,768 | $ 2,687 |
Income tax refundable | 1,773 | 2,979 |
ATM in-transit | 1,006 | 819 |
Allowance for doubtful accounts | 85 | 30 |
Other (net of allowance for doubtful accounts of $85 and $30, respectively) | 1,208 | 2,025 |
Total accounts receivable, net | $ 6,755 | $ 8,510 |
Selected Account Information _2
Selected Account Information - Narrative (Details) | 6 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Receivable percentage | 6% |
Notes receivable, term | 1 year |
Maximum | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Receivable percentage | 9% |
Notes receivable, term | 20 years |
Selected Account Information _3
Selected Account Information - Components of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Selected Account Information [Abstract] | ||
Prepaid insurance | $ 4,960 | $ 191 |
Prepaid legal | 32 | 61 |
Prepaid taxes and licenses | 689 | 391 |
Prepaid rent | 150 | 296 |
Other | 1,039 | 560 |
Total prepaid expenses and other current assets | $ 6,870 | $ 1,499 |
Selected Account Information _4
Selected Account Information - Reconciliation of Goodwill (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance, gross | $ 88,921 |
Beginning balance, accumulated impairment | 21,154 |
Beginning balance, net | 67,767 |
Acquisitions, gross | 16,946 |
Acquisitions, accumulated impairment | 0 |
Acquisitions, net | 16,946 |
Impairment, gross | 0 |
Impairment, accumulated impairment | 662 |
Impairment, net | (662) |
Ending balance, gross | 105,867 |
Ending balance, accumulated impairment | 21,816 |
Ending balance, net | $ 84,051 |
Selected Account Information _5
Selected Account Information - Schedule of Components of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangibles, net | $ 156,331 | $ 144,049 |
Licenses | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Definite-lived: | 24,780 | 25,962 |
Leases acquired in-place | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Definite-lived: | 231 | 117 |
Noncompete agreements | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Definite-lived: | 25 | 55 |
Favorable leases | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Definite-lived: | 853 | 78 |
Software | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Definite-lived: | 618 | 723 |
Licenses | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived: | 105,142 | 103,972 |
Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived: | 24,659 | 13,119 |
Domain names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived: | $ 23 | $ 23 |
Selected Account Information _6
Selected Account Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Selected Account Information [Abstract] | ||
Insurance | $ 4,694 | $ 30 |
Sales and liquor taxes | 2,400 | 2,227 |
Payroll and related costs | 4,171 | 3,186 |
Property taxes | 1,813 | 2,618 |
Interest | 698 | 499 |
Patron tax | 464 | 467 |
Unearned revenues | 628 | 234 |
Lawsuit settlement | 3,109 | 246 |
Other | 2,981 | 1,821 |
Total accrued liabilities | $ 20,958 | $ 11,328 |
Selected Account Information _7
Selected Account Information - Schedule of Selling, General and Administrative Expenses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Selected Account Information [Abstract] | ||||
Taxes and permits | $ 2,739,000 | $ 2,361,000 | $ 5,423,000 | $ 4,597,000 |
Advertising and marketing | 2,731,000 | 2,248,000 | 5,401,000 | 4,631,000 |
Supplies and services | 2,657,000 | 2,175,000 | 5,081,000 | 4,155,000 |
Insurance | 2,238,000 | 2,481,000 | 4,820,000 | 4,876,000 |
Legal | 1,296,000 | 898,000 | 2,281,000 | 1,958,000 |
Lease | 1,765,000 | 1,572,000 | 3,527,000 | 3,212,000 |
Charge card fees | 1,683,000 | 1,466,000 | 3,580,000 | 2,797,000 |
Utilities | 1,353,000 | 1,108,000 | 2,624,000 | 2,043,000 |
Security | 1,308,000 | 1,050,000 | 2,472,000 | 2,137,000 |
Stock-based compensation | 706,000 | 0 | 1,647,000 | 0 |
Accounting and professional fees | 657,000 | 622,000 | 2,175,000 | 1,968,000 |
Repairs and maintenance | 1,207,000 | 903,000 | 2,371,000 | 1,628,000 |
Other | 1,686,000 | 1,553,000 | 3,356,000 | 2,921,000 |
Total selling, general and administrative expenses | $ 22,026,000 | $ 18,437,000 | $ 44,758,000 | $ 36,923,000 |
Selected Account Information _8
Selected Account Information - Components of Other Charges (Gains) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Selected Account Information [Abstract] | ||||
Impairment of assets | $ 662 | $ 0 | $ 662 | $ 0 |
Settlement of lawsuits | 3,120 | 385 | 3,120 | 577 |
Loss (gain) on disposal of businesses and assets | 3 | (58) | (587) | (400) |
Gain on insurance | (27) | (320) | (91) | (321) |
Other charges (gains), net | $ 3,758 | $ 7 | $ 3,104 | $ (144) |
Debt (Details)
Debt (Details) | Mar. 16, 2023 USD ($) property note monthly_installment | Mar. 09, 2023 USD ($) | Feb. 07, 2023 USD ($) note | Dec. 20, 2022 USD ($) monthly_installment | Nov. 18, 2022 USD ($) monthly_installment | Oct. 26, 2022 USD ($) monthly_installment | Oct. 10, 2022 USD ($) monthly_installment | Mar. 31, 2023 USD ($) note | Sep. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |||||||||
Long-term debt, maturity, year one | $ 21,600,000 | ||||||||
Long-term debt, maturity, year two | 38,000,000 | ||||||||
Long-term debt, maturity, year three | 16,800,000 | ||||||||
Long-term debt, maturity, year four | 12,700,000 | ||||||||
Long-term debt, maturity, year five | 19,600,000 | ||||||||
Long-term debt, maturity, after year five | 140,300,000 | ||||||||
Debt issuance costs, net | 3,200,000 | $ 3,400,000 | |||||||
Baby Dolls-Chicas Locas | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of real estate properties acquired | property | 5 | ||||||||
Scheduled Balloon Payments Of Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, maturity, year one | 3,800,000 | ||||||||
Long-term debt, maturity, year two | 25,700,000 | ||||||||
Long-term debt, maturity, year three | 4,800,000 | ||||||||
Long-term debt, maturity, year four | 0 | ||||||||
Long-term debt, maturity, year five | 6,100,000 | ||||||||
Long-term debt, maturity, after year five | $ 71,800,000 | ||||||||
Notes Payable to Banks | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 1,500,000 | $ 2,300,000 | |||||||
Debt instrument, term | 18 months | 18 months | |||||||
Number of monthly installments | monthly_installment | 17 | 17 | |||||||
Debt issuance costs | $ 26,000 | ||||||||
Notes Payable to Banks | 6% Fifteen-Year Promissory Note | Club In Dickinson, Texas - Adult Entertainment Business | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 5,000,000 | ||||||||
Debt instrument, term | 15 years | ||||||||
Debt instrument, interest rate, stated percentage | 6% | ||||||||
Number of monthly installments | monthly_installment | 180 | ||||||||
Debt instrument, periodic payment | $ 42,193 | ||||||||
Notes Payable to Banks | 6.67% Five-Year Promissory Note | Food Hall Property In Greenwood Village, Colorado | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 3,325,000 | ||||||||
Debt instrument, term | 5 years | ||||||||
Debt instrument, interest rate, stated percentage | 6.67% | ||||||||
Number of monthly installments | monthly_installment | 59 | ||||||||
Debt instrument, periodic payment, principal | $ 22,805 | ||||||||
Notes Payable to Banks | Six Seller Financed Promissory Note | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 2,000,000 | ||||||||
Debt instrument, term | 24 months | ||||||||
Debt instrument, interest rate, stated percentage | 7% | ||||||||
Debt instrument, periodic payment | $ 39,602,000 | ||||||||
Number of seller-financed notes | note | 6 | ||||||||
Period of principal and interest | 23 months | ||||||||
Amortization period of interest | 60 months | ||||||||
Notes Payable to Banks | Nine Secured Promissory Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 25,500,000 | ||||||||
Debt instrument, term | 10 years | ||||||||
Debt instrument, interest rate, stated percentage | 7% | ||||||||
Number of monthly installments | monthly_installment | 120 | ||||||||
Debt instrument, periodic payment | $ 296,077 | ||||||||
Number of seller-financed notes | note | 9 | ||||||||
Notes Payable to Banks | Nine Secured Promissory Notes | Baby Dolls-Chicas Locas | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of seller-financed notes | note | 9 | ||||||||
Notes Payable to Banks | Promissory Note Related To Real Estate Properties | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 5,000,000 | ||||||||
Principal payment | $ 1,000,000 | ||||||||
Notes Payable to Banks | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 6% | 6% | |||||||
Notes Payable to Banks | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.50% | 0.50% | |||||||
Notes Payable to Banks | Prime Rate Floor | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 6% | 6% | |||||||
Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 10,000,000 | ||||||||
Debt instrument, term | 24 months | ||||||||
Debt issuance costs | $ 115,000 | ||||||||
Letters of credit outstanding, amount | 10,000,000 | ||||||||
Principal balance threshold for revolver feature | 5,000,000 | ||||||||
Maximum borrowing capacity | $ 5,000,000 | ||||||||
Unused capacity, commitment fee percentage | 0.50% | ||||||||
Average outstanding amount, threshold for non-usage fee (less than) | $ 3,000,000 | ||||||||
Aggregate advances amount, threshold for non-usage fee (less than) | $ 3,000,000 | ||||||||
Debt issuance costs, amortization period | 24 months | ||||||||
Compensating balance | $ 3,000,000 | ||||||||
Minimum tangible net worth | 20,000,000 | ||||||||
Line of Credit | Baby Dolls-Chicas Locas | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 10,000,000 | ||||||||
Line of Credit | Baby Dolls-Chicas Locas | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 10,000,000 | ||||||||
Line of Credit | Prime Rate | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1% |
Stock-based Compensation (Detai
Stock-based Compensation (Details) | 3 Months Ended | 6 Months Ended | ||||
Feb. 09, 2022 member shares | Mar. 31, 2023 USD ($) shares | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) | Feb. 07, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | $ | $ 706,000 | $ 0 | $ 1,647,000 | $ 0 | ||
Unrecognized stock based compensation expense, stock options | $ | $ 5,400,000 | $ 5,400,000 | ||||
Compensation cost not yet recognized, period for recognition | 2 years 10 months 24 days | |||||
Vesting period | 4 years | |||||
Expiration period | 5 years | |||||
Weighted average grant date fair value (in usd per share) | $ / shares | $ 31.37 | |||||
Options exercisable (in shares) | 120,000 | 120,000 | ||||
Share-Based Payment Arrangement, Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dilutive share (in share) | 300,000 | 300,000 | ||||
Share-Based Payment Arrangement, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 20% | |||||
Share-Based Payment Arrangement, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 20% | |||||
Share-Based Payment Arrangement, Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 20% | |||||
Share-Based Payment Arrangement, Tranche Four | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 20% | |||||
Share-Based Payment Arrangement, Tranche Five | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 20% | |||||
2022 Stock Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants in period (in shares) | 50,000 | |||||
Number of members of management receiving shares | member | 6 | |||||
2022 Stock Option Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant (in shares) | 300,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | $ 2.1 | $ 3.4 | $ 5.2 | $ 6.3 |
Effective income tax rate | 21.80% | 23.40% | 22.40% | 22.60% |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory income tax expense | 21% | 21% | 21% | 21% |
State income taxes, net of federal benefit | 4% | 2.90% | 4% | 2.90% |
Permanent differences | 0.60% | 0.50% | 0.50% | 0.40% |
Tax credits | (3.80%) | (3.10%) | (3.20%) | (2.60%) |
Other | 0% | 2.10% | 0.10% | 0.80% |
Total income tax expense | 21.80% | 23.40% | 22.40% | 22.60% |
Commitments and Contingencies -
Commitments and Contingencies - Tax Patron Tax (Details) | 6 Months Ended |
Mar. 31, 2023 USD ($) plaintiff | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of plaintiffs | plaintiff | 5 |
Patron tax on monthly basis per customer | $ | $ 5 |
Commitments and Contingencies_2
Commitments and Contingencies - Indemnity Insurance Corporation (Details) - Indemnity Insurance Corporation - claim | 6 Months Ended | |
Apr. 10, 2014 | Mar. 31, 2023 | |
Loss Contingencies [Line Items] | ||
Percentage of costs of litigation | 100% | |
Number of claims pending | 1 | |
Loss contingency, number of claims filed | 71 |
Commitments and Contingencies_3
Commitments and Contingencies - Shareholder Derivative Action (Details) - plaintiff | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | |
Loss Contingencies [Line Items] | ||
Number of plaintiffs | 5 | |
Shareholder Derivative Action | ||
Loss Contingencies [Line Items] | ||
Number of plaintiffs | 2 |
Commitments and Contingencies_4
Commitments and Contingencies - Other (Details) - USD ($) $ in Millions | 1 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2017 | |
Loss Contingencies [Line Items] | ||
Litigation settlement, amount awarded to other party | $ 2.8 | |
Compensatory Damages | JAI Phoenix | ||
Loss Contingencies [Line Items] | ||
Loss contingency, damages sought, value | $ 1.4 | |
Punitive Damages | JAI Phoenix | ||
Loss Contingencies [Line Items] | ||
Loss contingency, damages sought, value | $ 4 |
Commitments and Contingencies_5
Commitments and Contingencies - General (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Settlement of lawsuits | $ 3,120 | $ 385 | $ 3,120 | $ 577 | |
Lawsuit settlement | $ 3,100 | $ 3,100 | $ 246 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Revenues (from external customers) | $ 71,517 | $ 63,692 | $ 141,485 | $ 125,528 | |
Income (loss) from operations | 13,427 | 17,081 | 30,325 | 32,992 | |
Depreciation and amortization | 3,760 | 2,877 | 7,067 | 5,071 | |
Capital expenditures | 8,337 | 4,140 | 20,890 | 13,990 | |
Total assets | 621,131 | 621,131 | $ 530,738 | ||
Nightclubs | |||||
Segment Reporting Information [Line Items] | |||||
Revenues (from external customers) | 57,031 | 48,174 | 113,356 | 94,955 | |
Income (loss) from operations | 17,995 | 19,126 | 40,735 | 37,862 | |
Depreciation and amortization | 2,464 | 2,206 | 4,949 | 3,753 | |
Capital expenditures | 1,214 | 1,662 | 5,358 | 10,890 | |
Total assets | 503,697 | 503,697 | 437,096 | ||
Bombshells | |||||
Segment Reporting Information [Line Items] | |||||
Revenues (from external customers) | 14,315 | 15,333 | 27,746 | 30,104 | |
Income (loss) from operations | 1,775 | 3,468 | 3,622 | 6,270 | |
Depreciation and amortization | 931 | 454 | 1,389 | 883 | |
Capital expenditures | 5,508 | 1,901 | 13,827 | 2,205 | |
Total assets | 76,171 | 76,171 | 62,021 | ||
Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues (from external customers) | 171 | 185 | 383 | 469 | |
Income (loss) from operations | (168) | (34) | (353) | (77) | |
Depreciation and amortization | 63 | 7 | 126 | 13 | |
Capital expenditures | 41 | 359 | 78 | 548 | |
Total assets | 2,751 | 2,751 | 2,635 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | (6,175) | (5,479) | (13,679) | (11,063) | |
Depreciation and amortization | 302 | 210 | 603 | 422 | |
Capital expenditures | 1,574 | $ 218 | 1,627 | $ 347 | |
Total assets | $ 38,512 | $ 38,512 | $ 28,986 |
Segment Information - Narrative
Segment Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 71,517 | $ 63,692 | $ 141,485 | $ 125,528 | |
Nightclubs | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 57,031 | 48,174 | 113,356 | 94,955 | |
Goodwill transfers | 9,400 | $ 9,000 | |||
Increase (decrease) in prepaid insurance | 3,700 | ||||
Nightclubs | Intercompany Rental Revenue | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 3,900 | 3,300 | 7,600 | 6,500 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill transfers | (9,400) | $ (9,000) | |||
Increase (decrease) in prepaid insurance | (4,700) | ||||
Corporate | Intercompany Rental Revenue | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 31 | 31 | 262 | 199 | |
Bombshells | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 14,315 | 15,333 | 27,746 | 30,104 | |
Increase (decrease) in prepaid insurance | 961 | ||||
Other | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 171 | 185 | 383 | 469 | |
Increase (decrease) in prepaid insurance | 29 | ||||
Other | Intercompany Sales | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 78 | $ 53 | $ 115 | $ 122 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Oct. 12, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||||||
Proceeds from related party debt | $ 0 | $ 650,000 | ||||
Ed Anakar and Nourdean Anakar | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from related party debt | $ 500,000 | |||||
Allen Chhay and Bradley Chhay | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from related party debt | 150,000 | |||||
Sherwood Forest Creations, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amounts of transaction | $ 188,285 | $ 3,112 | 188,285 | 27,149 | ||
Nottingham Creations and Sherwood Forest Creations LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties, current | 110,809 | 110,809 | $ 92,808 | |||
TW Mechanical LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amounts of transaction | 379 | 3,704 | 379 | 84,700 | ||
Due to related parties, current | $ 0 | $ 0 | 9,338 | |||
Related party, ownership percentage | 50% | 50% | ||||
TW Mechanical LLC | Third-Party General Contractor | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amounts of transaction | $ 18,000 | $ 3,809 | $ 64,000 | $ 3,809 | ||
Commercial Bank Indebtedness | ||||||
Related Party Transaction [Line Items] | ||||||
Long-term debt | $ 119,100,000 | $ 119,100,000 | $ 115,100,000 | |||
Unsecured Debt | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, face amount | $ 17,000,000 |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Operating lease expense – fixed payments | $ 1,288 | $ 1,136 | $ 2,547 | $ 2,267 |
Variable lease expense | 359 | 233 | 786 | 567 |
Short-term and other lease expense (includes $63 and $58 recorded in advertising and marketing for the three months ended March 31, 2023 and 2022, respectively, and $127 and $130 for the six months ended March 31, 2023 and 2022, respectively; and $138 and $107 recorded in repairs and maintenance for the three months ended March 31, 2023 and 2022, respectively, and $265 and $190 for the six months ended March 31, 2023 and 2022, respectively; see Note 6) | 319 | 368 | 586 | 698 |
Sublease income | 0 | (1) | 0 | (3) |
Total lease expense, net | 1,966 | 1,736 | 3,919 | 3,529 |
Operating cash outflows from operating leases | $ 1,920 | $ 1,690 | $ 3,830 | $ 3,439 |
Weighted average remaining lease term – operating leases | 10 years 10 months 24 days | 12 years | 10 years 10 months 24 days | 12 years |
Weighted average discount rate – operating leases | 5.70% | 5.60% | 5.70% | 5.60% |
Advertising and marketing | $ 2,731 | $ 2,248 | $ 5,401 | $ 4,631 |
Repairs and maintenance | 1,207 | 903 | 2,371 | 1,628 |
Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Advertising and marketing | 63 | 58 | 127 | 130 |
Repairs and maintenance | $ 138 | $ 107 | $ 265 | $ 190 |
Leases - Schedule of Future Mat
Leases - Schedule of Future Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
April 2023 - March 2024 | $ 5,140 |
April 2024 - March 2025 | 5,201 |
April 2025 - March 2026 | 5,289 |
April 2026 - March 2027 | 5,291 |
April 2027 - March 2028 | 4,726 |
Thereafter | 28,129 |
Future maturities of lease liabilities | 53,776 |
Principal Payments | |
Lessee, Lease, Description [Line Items] | |
April 2023 - March 2024 | 2,951 |
April 2024 - March 2025 | 3,185 |
April 2025 - March 2026 | 3,460 |
April 2026 - March 2027 | 3,665 |
April 2027 - March 2028 | 3,303 |
Thereafter | 22,816 |
Future maturities of lease liabilities | 39,380 |
Interest Payments | |
Lessee, Lease, Description [Line Items] | |
April 2023 - March 2024 | 2,189 |
April 2024 - March 2025 | 2,016 |
April 2025 - March 2026 | 1,829 |
April 2026 - March 2027 | 1,626 |
April 2027 - March 2028 | 1,423 |
Thereafter | 5,313 |
Future maturities of lease liabilities | $ 14,396 |